Distribution Hacking 101 - How to Achieve Growth

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Distribution Hacking [email protected]

Transcript of Distribution Hacking 101 - How to Achieve Growth

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Distribution [email protected]

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Distribution Hacking is…

Data-driven paid advertising

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Paid AdvertisingWORKS(When done

methodically)

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Paid advertising is the easiest way to acquire new users

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Many startups don’t do paid advertising

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Let’s fix that

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Distribution

HackingFramework

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A methodology for measuring, experimenting, and optimizing

user acquisition

The distribution hacking framework is…

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CPACost Per Acquisition

Key Metrics

LTVLifetime Value

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CPACost Per Acquisition

Our Goal

LTVLifetime Value

<

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CPACost Per Acquisition

Our Goal

LTVLifetime Value

<+

Scale

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$8 CPA

Example…

$20 LTV

=$12 RPU

Revenue Per User

-

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$8 CPA

Example…

$20 LTV

=$12 RPU

Revenue Per User

-

+ Scale

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Let’s dive in…

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Six Steps

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Step 1:

Implement analytics & testing tools

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Example…Three step conversion funnel

SignupAdd to Cart Checkout

(Conversion Goal)

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Example…

Track each step of the funnel

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B20%

A30%

Example…

And split test

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When you have data…

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You can optimize!

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Analytics

Split Testing

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Step 2:

Define target customer

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Pre vs. PostProduct Market Fit

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Pre-PMF

Customer Discovery

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Post-PMF

Customer Scaling

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Pre vs. PostProduct Market Fit

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Whois your

customer?

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AgeGenderGeographyIncome

Demographic factors

Marital StatusEducationOccupationInterests

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Critical Question:

What is your customer’s persona when they are using

your product?

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People have multiple personas

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Personal vs. Business

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Step 3:

Define conversion goal & funnel

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Conversion goal is a single event such that when a user completes it, they are considered

a customer.

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Sign upLeadOpt in newsletterSaleSubscription

Examples…

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Conversion funnel is the path your customers take to complete the

conversion goal.

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Example…

Signup Add to Cart Checkout(Conversion Goal)

10,000 users

40% 20% 5%

500 customers

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Step 4:

Hypothesize acquisition channel

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Think about demographic

+ persona

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Where do customers “hang out” online?

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Step 5:

Setup ads & execute experiment

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Learn each ad platform that

you want to use

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Your budget should be enough to accumulate

statistically significant data

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Simple imagesClear value propositionSingle call-to-action

General tips…

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Step 6:

Optimize

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Potential for success?

YES NOOptimize

Step 4

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CTR, Cost

Conversion Rate

What to optimizeAdvertisem

entLanding Page

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Copy

Call to Action Image

Ad optimization

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Landing page optimizationDesig

nCall to Action

Value Prop

Fields

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Step 1: Implement analytics & testing toolsStep 2: Define target customerStep 3: Define conversion goal & funnel--------------------------------------------Step 4: Hypothesize acquisition channelStep 5: Setup ads + execute experimentStep 6: Optimize or return to Step 4

Recap…

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THANK [email protected]